The VLC team has announced on twitter than an update to the VLC beta in the windows phone store is imminent.
The update will bring numerous improvements and also initial support for hardware acceleration for video decoding, which in some circumstances should result in smoother video playback.
VLC for Windows Phone 1.2.0 is being deployed on the store, in beta. This should bring numerous improvements and partial hardware decoding.
— VideoLAN (@videolan) March 20, 2015
The current version of the app can be downloaded from the Windows Phone Store here.